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Introduction to Economics (Econ101)

Case Study Three


The role of central banks

 Submit the presentation slides to your tutor. Deadline: week 29/10/2018 to


3/11/2018
 Presentation takes place in the week 5/11/2018 to 10/11/2018.
 The presentation is worth 10% of the overall mark of the course.
 Your presentation should not be longer than 10 minutes. You may use PowerPoint for
your presentation.

You may visit the following webpages:


 www.investopedia.com/articles/03/050703.asp
 www.washingtonpost.com/news/wonk/wp/2014/06/05/less-than-zero-europe-introduces-negative-
interest-rates-to-save-its-economy
 https://en.wikipedia.org/wiki/Open_market_operation
 https://bankerguide.wordpress.com/2012/08/24/hello-world/

Questions:

1) What are the roles of nowadays central banks? What is their main target? How do they
try to achieve it?
2) What is the link between commercial banks and the central bank?
3) How does open market policy work? What are negative interest rates and how are they
linked to open market policy?

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